(Reuters) – Amazon.com Inc. has abandoned plans to build its headquarters in New York after opposition from local politicians and some of its potential neighbors, the third most valuable US public company.
The search for the second Amazon headquarters, which he described as HQ2, was considered to be a huge success for a long time in public relations, attracting the attention of the world community and the interest of the cities of the United States and Canada.
Amazon, trained in deer achievements by municipal leaders across the country, seemed to have struck cruelty, even rude, with greetings from some New Yorkers.
Some residents of the Quince district have set protests. Politicians on the left side of the Democratic Party, including the first-year student of the American congressmen Alexandria Ocacio-Cortes, condemned the promise of the state to provide billions of dollars of tax privileges to the company controlled by the richest man in the world.
People reported this decision saying that Amazon had made a decision at the start of Thursday after intense negotiations, starting Wednesday, and against the backdrop of growing concern about the small vocal minority. People said that Amazon would not translate any of the planned jobs to Tennessee or Virginia, but plans to develop an existing network.
By the end of the year Amazon plans to have 700 employees in New York within the framework of the HQ2 project and does not plan 25,000 in Queens for 1
The company began to consider alternatives last week. The online store has not yet purchased any land for a project that would ease plans, reports Reuters on Thursday.
The proposal faced opposition from local politicians who opposed the $ 2.8bn stimulus promised by Amazon in an agreement secretly debated by New York governor Andrew Cuomo and mayor of New York Bill de Blasio.
In his statement, de Blasio accused Amazon of not resorting to local criticism.
"We gave Amazon the opportunity to be a good neighbor and do business in the largest city in the world," he said. "Instead of working with the community, Amazon rejected this opportunity."
The company said, "For Amazon, the obligation to build a new headquarters requires a positive, cooperative relationship with state and local elected officials who will support the long-term."
PLANS ARE NOT REPEATING THE SEARCH HQ2
Some Neighbors , once persistently haunted by artists who quickly survived the explosion of recent high-rise development, also opposed this plan. Many-year-old residents feared that they would crowd out rent increases and ineffective pressures on already overloaded underground and sewerage
Cuomo was a convinced adherent of the project, joking that he would change his name on Amazon Cuomo if it could help sweeten the deal.He advertised not only the jobs he created but also long-term tax revenues , which he will generate.
Mark Hamrik, a senior economic analyst at Bankrate.com, said that the turn might lead other companies to think about an expansion in New York.
"This is a staggering development in which Amazon is essentially subjected to vocal critics," he said.
Amazon said on Thursday that it does not plan to reopen the annual search that attracted 238 offers from cities in North America.
Nashville, a finalist who received a 5,000 compromisation prize at the Place of Work, said he remains open to extending Amazon plans in Tennessee.
Shares of Amazon declined by 0.5%.
"I think the PR event turned out to be a mistake," said Jason Benovitz, Senior Portfolio Manager of the Roosevelt Investment Group, who owns Amazon shares.
"It lasted very long and the rage began. You can compare it to Google, which sinks billions of dollars in Chelsea's neighborhood in Manhattan without making noise, or Apple invests in Austin.
Rival Alphabet Inc. announced in December that it plans to invest more than $ 1 billion in its new York campus to double the number of employees in more than 7,000 people.
"REALLY GOOD GAMES POKER"
Amazon in New York several hours before the announcement betrayed no knowledge of the cancellation of the deal when they met members of the local community on Thursday morning, says Keny Greenberg, a neon artist and Long Island Community Board Member.
"Or they are really good players in poker, or they did not know," said Greenberg of Amazon's representatives. "There was no hint at it at all".
Greenberg said that it was open for the arrival of the Amazon if it led to improved infrastructure, but that "unanswered questions" continued to rise over time.
The meeting with Amazon officials was conducted to answer the community's concerns about working conditions for Amazon warehouse staff and suppliers, as well as opposition from the trade unions.
"The victory of an unprecedented corporate welfare act is a triumph that has to change the way we engage in economic development in our city and state forever," – Jimmy Van Bramer, city councilor from Queens who opposed the project, said on Twitter.
One of the most powerful private sector trade unions in the city, the Union of retailers, wholesalers and department stores, said that the unexpected exit of the company confirmed his critique.
"Instead of resolving the legal concerns that many New Yorkers have caused, Amazon says that you do it in your own way or not, we will not even consider New York concern," said the press secretary of the Chelsea trade union. Connor "This is not what a responsible business will do."
Chicago, Miami and Newark are among the finalists who have expressed interest in another chance to become the home of the Amazon project.
Report by David Shepardson in Washington DC and Jonathan Allen in New York; Additional reports by Dana Trott and Joseph Oaks in New York, Nandita Bose in Washington, Jeffrey Dustin in San Francisco; Editing Nick Zieminski